How to Stop Charge Card Judgments

If you don't pay a charge card, your account will eventually be turned over to a collection agency. When a collection agency has your account, they may file a judgment against you, which can lead to further collection activity. Your bank account can be levied, meaning all of the money or a portion of the money in the account, is frozen and turned over to the agency as payment for your debt. They may also garnish your wages up to 25 percent per week or pay period. Sometimes a lien can be filed against certain property. There are some things you can do to stop a charge card judgment.

Instructions

1

Find out all of your options. Research the various methods that can be utilized to stop judgments. You may have to seek legal counsel. Once you have all of your information determine, decide which method is going to help you stop a judgment effectively and efficiently. Seek the method that helps you achieve your financial goals.

2

File a petition for bankruptcy. Call a bankruptcy attorney and provide all of your information. An automatic stay will be issued to all of your creditors once the bankruptcy has been filed. This means they must stop all collection activity including the execution of judgments. You may need a list of all debts plus all assets in addition to pay stubs and tax returns. Your attorney will provide the proper instruction to work you through the process. There is a chance you will need to rebuild your credit after filing a petition for bankruptcy. Your credit file will be damaged and your credit score will be lowered significantly.

3

Direct your creditors to your attorney. When a bankruptcy has been filed, some creditors may forget to update their computer system, which means you could still receive phone calls. If they ask you for a payment, tell them you have filed a petition for bankruptcy and give them your attorney's name and phone number.

4

Contact creditors which have filed judgments. You can expedite the process to make sure judgments are stopped, by contacting those creditors who have filed judgments. Provide them with your attorney's name, phone number, address, type of bankruptcy filed, bankruptcy case number and the filing date. Creditors will not freeze your bank account, garnish your wages or attach liens to any of your property or assets.

5

Wait for the discharge of debtors notice. You will receive a discharge of debtors notice in approximately four months after you file a petition for bankruptcy protection. When debts are discharged, you are no longer responsible for paying them.